DNOW Q2 Earnings Beat on 13% US Revenue Surge, Record Cash Flow
DNOW sits 34% above its 52-week low of $10.935.
Summary
DNOW posted a strong Q2, with revenue of $1.31B beating the $1.27B consensus and adjusted EPS of $0.12 topping estimates by $0.02. The US segment drove the beat, growing 13% on broad-based strength across midstream, gas utility, and upstream. Adjusted EBITDA jumped 54% sequentially to $60M, and the company generated record cash flow from operations, aided by collections and inventory streamlining. This follows a Q1 marred by a $44M net loss and acquisition-related costs; the sharp sequential improvement signals the integration and cost initiatives are gaining traction. The company also bought back $25M in stock during the quarter, bringing year-to-date repurchases to $75M.
At the time of this announcement, DNOW was trading at $14.70 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.6B. The 52-week trading range was $10.94 to $17.26. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.